Question 9 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 9 Chapter 2 of +2-A

Question 9 Chapter 2 of +2-A

9. Bat and Ball are partners sharing the profits in the ratio of 2 : 3 with capitals of ₹ 1,20,000 and ₹ 60,000 respectively. On 1st October 2018, Bat and Ball gave loans of ₹ 2,40,000 and ₹ 1,20,000 respectively to the firm. Bat had allowed the firm to use his property for business for a monthly rent of ₹ 5,000. The loss for the year ended 31st March 2019 before rent and interest amounted to ₹ 9,000. Show the distribution of profit/loss.

The solution of Question 9 Chapter 2 of +2-A

Profit and Loss Appropriation Account A/c
for the year ended 31st March 2019
Particulars
Amount Particulars
Amount
To Profit and Loss A/c 9,000 By Bat’s Capital A/c 31,920
To Rent A/c (5000 X 12) 60,000 79,800 × 2/5  
To Interest on Bat’s Loan 7,200 By Ball’s Capital A/c 47,880
To Interest on Ball’s Loan
3,600
79,800 × 3/5  
  79,800     79,800

Working Note: –

Calculation of Total Interest on Bat’s Loan
Interest on Loan from Bat = Value of Loan X Rate of Interest X Period
Value of Loan = 2,40,000
Rate of Interest = 6%
Period = from 01/10/18 to 31/03/19 i.e. 6 months
(Date of Loan Taken to the end of Financial year.)
= 2,40,000 X 6/100 X 6/12
Total Interest on A’s Loan = 7,200/-
Calculation of Total Interest on Ball’s Loan
Interest on Loan from Ball = Value of Loan X Rate of Interest X Period
Value of Loan = 1,20,000
Rate of Interest = 6%
Period = from 01/10/18 to 31/03/19 i.e. 6 months
(Date of Loan Taken to the end of Financial year.)
= 1,20,000 X 6/100 X 6/12
Total Interest on B’s Loan = 3,600/-

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

 

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2 Book 1 min - Question 9 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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